How has been the historical performance of Remi Edelstahl?

Revenue and Operating Income Trends

Over the seven-year period ending March 2025, Remi Edelstahl’s net sales exhibited notable variability. After a dip in fiscal 2021 to ₹82.12 crores, sales rebounded strongly, reaching ₹138.56 crores by March 2025. This represents a significant recovery and growth compared to the earlier years, with the company surpassing its pre-pandemic sales levels. Total operating income mirrored this trend, as there was no other operating income reported, making net sales the primary revenue driver.

Raw material costs, a substantial component of expenses, rose in line with sales but showed some volatility, peaking in fiscal 2023 before moderating in subsequent years. Purchase of finished goods declined steadily, indicating a possible shift towards greater in-house production or inventory management. Employee costs increased gradually, reflecting either workforce expansion or wage inflation, while other expenses also rose consistently, suggesting higher operational overheads.

Profitability and Margins

Operating profit before depreciation and interest (PBDIT) excluding other income showed a steady improvement from ₹4.81 crores in fiscal 2021 to ₹7.88 crores in fiscal 2025. Including other income, operating profit rose to ₹8.39 crores in the latest fiscal year. Despite rising expenses, the company managed to enhance its operating profit margin to 5.69% in March 2025, up from 4.99% the previous year and a low of 3.83% in 2023.

Interest costs have decreased notably from ₹3.47 crores in 2019 to ₹1.36 crores in 2025, reflecting a reduction in debt servicing burden. This has contributed to improved gross profit before tax, which climbed to ₹7.03 crores in the latest year. Profit before tax and profit after tax have also shown a positive trend, with PAT rising to ₹2.67 crores in 2025 from a mere ₹0.12 crores in 2019. Correspondingly, the PAT margin improved to 1.93%, indicating better bottom-line efficiency.

Balance Sheet and Financial Position

Remi Edelstahl’s shareholder funds have grown steadily, reaching ₹45.99 crores in March 2025, up from ₹41.31 crores in 2020. The company has successfully reduced its total debt from ₹35.77 crores in 2021 to ₹14.96 crores in 2025, signalling a stronger financial position and lower leverage. This deleveraging is further supported by a decline in long-term borrowings and short-term borrowings over the period.

On the asset side, net block values have decreased from ₹34.23 crores in 2020 to ₹24.92 crores in 2025, possibly due to depreciation and asset optimisation. Current assets have fluctuated but remain robust at ₹49.68 crores in the latest fiscal year. The company’s book value per share has improved steadily, reaching ₹41.88 by March 2025, reflecting enhanced net worth per equity share.

Cash Flow and Liquidity

Cash flow from operating activities has been inconsistent, with a notable positive inflow of ₹24 crores in 2025 following a negative cash flow in 2024. This volatility is largely due to changes in working capital, which swung from a negative ₹11 crores in 2024 to a positive ₹16 crores in 2025. Investing activities have generally seen outflows, consistent with capital expenditure and asset maintenance, while financing activities have varied, including debt repayments and occasional borrowings.

Closing cash and cash equivalents stood at ₹1 crore in March 2025, down from ₹6 crores in 2020, indicating a more conservative cash holding strategy. Overall, the company’s liquidity position appears stable, supported by manageable debt levels and positive operating cash flows in recent years.

Summary and Investor Insights

Remi Edelstahl’s historical performance reveals a company that has navigated market fluctuations with resilience. The rebound in sales and improvement in profitability margins over the last two years are encouraging signs. The reduction in debt and steady growth in shareholder equity further strengthen its financial foundation. However, the relatively modest profit after tax margins and fluctuating cash flows suggest that investors should monitor operational efficiencies and working capital management closely.

For investors seeking exposure to the stainless steel sector, Remi Edelstahl offers a blend of growth potential and improving financial health. Yet, given the competitive landscape and the company’s margin pressures, a cautious approach with regular performance reviews is advisable.

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